A lender must obtain an MBS commitment before it can deliver mortgages into a single lender MBS pool or a Fannie Majors. The commitment evidences an agreement between Fannie Mae and a lender to buy and sell, respectively, mortgages for inclusion in a particular MBS pool. These contracts set forth the terms and conditions for delivery of specified mortgages for MBS. When a lender enters into a mandatory MBS commitment to sell loans to Fannie Mae, the lender agrees to sell a certain volume of loans having a specified set of loan parameters to Fannie Mae, and Fannie Mae provides the lender with guaranty fee pricing for such mortgage loans for delivery under MBS execution.
Lenders can obtain commitments on any weekday, with the exception of bond market observed holidays as defined by the Securities Industry and Financial Markets Association (SIFMA). Lenders can also obtain commitments for delivery in a future MBS issue month for all mortgage products for which pricing is offered through the MBS committing application.
Fannie Mae confirmed its acceptance of the lender’s request for a mandatory commitment by electronically transmitting a commitment confirmation to the lender. Lenders should contact the Capital Markets Pricing and Sales Desk if they experience any problems receiving a commitment confirmation (see E-1-03, List of Contacts).
Lenders obtain current guaranty fee pricing specific to their institution by accessing Fannie Mae’s MBS committing application. If the lender wants to request pricing for a mortgage product in an issue month that is not available in the MBS committing application, then the lender must contact its Fannie Mae regional office or the Capital Markets Pricing and Sales Desk.
Lenders that want to sell loans to Fannie Mae that contain unique eligibility and underwriting considerations not permissible for delivery via a standard commitment may request a negotiated commitment. Lenders should contact their Fannie Mae regional office for details (see E-1-03, List of Contacts).
MBS commitments are for mandatory delivery by the lender. If the lender is unable to meet the terms of the commitment, the lender must take the action in the MBS committing application to pair-off or roll the outstanding balance of the commitment before the last business day of the issue month applicable to that commitment. Fannie Mae may charge lenders for lender-executed or lender-requested rolls or pair-offs for mandatory commitments. These fees, if charged, are drafted from the lender’s designated account.
Fannie Mae may pair-off the outstanding balance of a commitment on a lender’s behalf if the lender fails to pair-off or roll the outstanding balance into the following issue month by last business day of the issue month of the related commitment.
The table below provides references to the Announcements that have been issued that are related to this topic.
|Announcement SEL-2016–09||December 06, 2016|
|Announcement SEL-2014–11||August 26, 2014|
|Announcement SEL-2014–10||July 29, 2014|
|Announcement SEL-2012–13||November 13, 2012|
|Announcement SEL-2012–06||June 26, 2012|
|Announcement SEL-2011–11||October 25, 2011|
|Announcement 09-29||September 22, 2009|